Saturday, January 15, 2011

Trinidad and Tobago- Dual Economy Growth Diagnostic

In the case of a dual, natural resource abundant economy such as Trinidad & Tobago’s, an aggregate view is not enough to understand the growth opportunities and binding constraints: we need to stress the growth opportunities of each sector and their interactions, since the
constraints may be different for non-energy and energy activities.

A major concern for Trinidad & Tobago is the diversification of economic activity, and preparing for the time when oil and gas reserves are depleted. The binding constraints to growth in the non-energy sector in Trinidad & Tobago are outlined in the following growth diagnostic tree. The rest of this work will attempt to identify which of these potential constraints to growth are binding.